Sasol Mining Contractor Management 16 Feb 2005 Copyright

Sasol Mining: Contractor Management 16 Feb 2005 Copyright Sasol Ltd 2005

Copyright Sasol Ltd 2005 Sasol Mining: SH&E staffing Sasol Limited Tripartite Structures Sasol Mining MHSC Operations Group Services Mpumalanga Tripartite H & S Forum 8 Mines & Plants (+-10 500 empl’s) Subject Matter Expertise - Standardization - Systems & Administration - Management Standards MHSI (Mpumalanga Principle + staff) Line Supervisors (+-430) Safety Professionals (59) Full time Health & Safety Union Representatives (8) Work Team Safety Representatives (+-200) DME Safety (12) Environment (7) Health (48) Training (26) Employers (2 each company) Employees (2 each union each company) Meet quarterly Mpumalanga Mine Health & Safety Inspectorate Sasol Mining H & S Agreement Hygiene (8) 1 st level meetings – Shaft/area based 2 nd level meetings – Mine/plant based 3 rd Level meetings – Group wide Rock Engineering (3) Full time Union Representatives (3) Joint activities Hazard Identification Risk Assessment (HIRA), Development and approval of COP’s and SOP’s, Identification and resolution of H&S issues via H&S agreement forums, Incident investigation Joint activities H&S Governance, Rreportable incident investigation, Best Practice and knowledge sharing Sasol Mining H&S staffing: Full time H&S employees - 174 (1: 60), Supervisors with H&S statutorily appointments – 430 (1: 24)

Sasol Mining vs Coal Industry: FCR Copyright Sasol Ltd 2005

Sasol Mining vs Coal Industry: LWDCR Copyright Sasol Ltd 2005

Sasol Mining vs Coal Industry: RICR Copyright Sasol Ltd 2005

Drivers: DME – Areas of concern • Increase of small scale mines • Illegal and informal miners • Elimination of recurring accidents • Change management • Lack of accountability on health and safety matters • Lack of effective training (Risk assessment) • Control of contractors • Effectiveness of health and safety representatives Copyright Sasol Ltd 2005

Drivers: DME – Areas of concern • Increase of small scale mines • Illegal and informal miners • Elimination of recurring accidents • Change management • Lack of accountability on health and safety matters • Lack of effective training (Risk assessment) • Control of contractors • Effectiveness of health and safety representatives Copyright Sasol Ltd 2005

Drivers: Sasol Mining Safety Strategic Principles ZERO HARM Copyright Sasol Ltd 2005

Top Health & Safety Management Levers • Behavioral Safety Training • Surface Mock Mine • Top Down Interventions and Selected Training • Contractors Risk Rating • Du. Pont Leadership Approach • Incident Root Cause Analysis and Feedback • Fatal Behaviors • Administrative controls • Lead and Lag Indicators Copyright Sasol Ltd 2005

Top Health & Safety Management Levers • Behavioral Safety Training • Surface Mock Mine • Top Down Interventions and Selected Training • Contractors Risk Rating • Du. Pont Leadership Approach • Incident Root Cause Analysis and Feedback • Fatal Behaviors • Administrative controls • Lead and Lag Indicators Copyright Sasol Ltd 2005

What Do the Best Companies Do for SH&E? • Clearly describe what people are expected to do for SH&E • Make SH&E a line management responsibility and accountability • Incorporate safety into the business process as an operational strategy • Use proactive SH&E measurements • Have executives, Managers and business partners that do not support SH&E management —they lead it Copyright Sasol Ltd 2005

Contractor SH&E Risk Rating System Underlying principles: • Accountability and responsibility for SH&E must be legally enforceable on the correct party. • Outsourcing of work does not relieve Sasol Mining of MHSA accountability • Contractor owners, managers, supervisors and workers must have the skills and the work ethic to comply with SH&E requirements. • Hazard Identification Risk Assessment (HIRA) must carry higher status than cost, product quality and time management during work planning. • Effective risk mitigating codes, standards and procedures must be in place before work commences. • User-friendly management systems of continuous risk measurement, monitoring and corrective action must be in place. • The risk rating system should be contractually enforceable, defendable in the public eye, and – it must be the right thing to do. Copyright Sasol Ltd 2005

Contractor SH&E Risk Rating System Green Risk Rating • These Contractors are considered to possess the commitment, organizational ability and competence to effectively manage their SH&E performance equitably with Sasol Mining. This must be the only acceptable rating for Sasol Mining to wish to continue a commercial relationship with a contracting company Yellow Risk Rating • Any contractor, upon appointment will carry a yellow risk rating until he has shown that the underlying principles above are in place. • Yellow risk rated contractors have either not yet proven their ability to maintain a green rating or they have allowed their SH&E performance to slip from contracted levels. Additional management effort from the Contracting company and over-inspection from Sasol Mining are required to ensure contractual requirements are met and justify a Green Rating. Copyright Sasol Ltd 2005

Contractor SH&E Risk Rating System Orange Risk Rating • These Contractors are not meeting contractual SH&E requirements either through a deficiency in ownership/management structure or by resource inadequacy (incompetent employees or substandard equipment). Sasol Mining accountable person must take a risk assessment based decision on the continuation of a contract with an orange risk rated company. This decision will only be justified on condition of acceptable undertakings from Contractor owners and agreement for continuance from the next higher level Sasol Mining accountable person and the Sasol Mining Group Safety manager. This decision must be reported to the Sasol Mining Risk Manager. Copyright Sasol Ltd 2005

Contractor SH&E Risk Rating System Red Risk Rating • These Contractor’s would normally be commercially admissible to a Sasol Mining vendors list but do not meet SH&E requirements. • The onus remains on them to establish the capabilities to comply. • Existing contracts are suspended, and the contractor is to be removed from the vendors list until SH&E compliance criteria have been met. The decision to reinstate a contract or re-admit a contractor to the vendors list will only be justified on condition of acceptable undertakings from Contractor owners and agreement for continuance from the MHSA act 3(1) Sasol Mining appointee and the Sasol Mining Group Safety manager. This decision must be reported to the Sasol Mining Risk Manager Copyright Sasol Ltd 2005

Applying the SH&E Risk Rating System A Contracting Company’s Risk rating is affected each time an incident occurs Definition of an incident • Recordable case injury or harm • Equipment or materials damage, spillages etc • Equipment or materials conditions which are unacceptable SH&E hazards. • Non-compliance with agreed SH&E procedures or standards • Behavioral deficiencies by Contractor personnel Copyright Sasol Ltd 2005

Applying the SH&E Risk Rating System In the event of an incident • Stop work as required • Report incident as soon as practically possible to Sasol Mining • Contractor company investigate, Sasol Mining accountable person to investigate jointly or separately • Interim report (newsflash) within 24 hours • Full report as agreed with Sasol Mining accountable person • Corrective actions put in place by Contractor company Copyright Sasol Ltd 2005

Applying the SH&E Risk Rating System 1 st incident • • • Contractor is given a YELLOW Risk Rating Contractor is issued with a contractual non-compliance notification Contractor Risk Rating is restored to GREEN upon successful re-establishment of contractual requirements as measured by formal SH&E audit 2 nd incident (before GREEN status is restored) • • Contractor is given an ORANGE Risk Rating Work is temporarily suspended on the basis of unacceptable SH&E risk Contractor is issued with a second contractual non-compliance notification Contractor statutory appointee to present Contractor’s corrective management action plans to Sasol Mining accountable person who will approve their appropriateness prior approving further work NB Failure to report or concealing an incident will result in an ORANGE Risk Rating Copyright Sasol Ltd 2005

Applying the SH&E Risk Rating System 3 rd incident (before GREEN status is restored) • • Contractor is given an RED Risk Rating Work at all sites run by that Contractor is suspended on the basis of unacceptable SH&E risk Contractor is to redo his Hazard Identification Risk Assessment (HIRA) and review his mitigating codes, standards and procedures for re-acceptance by Sasol Mining accountable person must re-assess and approve the Contractor’s compliance to the contractual requirements prior to re-instatement NB Multiple incidents resulting from systemic shortcomings (inadequate leadership) will result in the rescinding of the statutory appointments of contractor personnel. This effectively requires Contractor to provide next higher level or other acceptable supervision on site. Copyright Sasol Ltd 2005